EQS-Adhoc: Leclanché SA: Exide Industries, India's largest manufacturer of batteries, and Leclanché announce the launch of a new joint venture to build lithium-ion batteries and energy storage solutions to power the growth of India's electric vehicle ...

EQS Group-Ad-hoc: Leclanché SA / Key word(s): Joint Venture/Joint Venture
Leclanché SA: Exide Industries, India's largest manufacturer of batteries, and
Leclanché announce the launch of a new joint venture to build lithium-ion
batteries and energy storage solutions to power the growth of India's electric
vehicle market
27-Jun-2018 / 18:07 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
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Exide Industries, India's largest manufacturer of batteries, and Leclanché
announce the launch of a new joint venture to build lithium-ion batteries and
energy storage solutions to power the growth of India's electric vehicle market
-Exclusive joint venture (JV) agreement signed on 27 June 2018 to address
India's transition to green energy and clean transportation
- Well timed JV, ideally positioned to be a leading provider to emerging multi
GWh storage markets for electric vehicles and grid connected applications in
India
Mumbai, India - Yverdon, Switzerland, 27 June 2018.Exide Industries Ltd, India's
largest manufacturer of lead acid storage batteries and power storage solutions
provider (BSE: 500086), and Leclanché SA (SIX:LECN), one of the world's leading
energy storage solution companies, headquartered in Switzerland, announced today
a joint venture to build lithium-ion batteries and provide energy storage
systems for India's electric vehicle market and grid-based applications.
With all the major cities in the world suffering from record-breaking pollution
levels, there is an urgent need for radical new ways to power transport.
Countries all over the world are working to find alternative solutions to reduce
harmful NOx emissions, which are damaging to human health and the environment.
As part of the JV, Leclanché will provide access to its knowhow and intellectual
property for lithium-ion cells, modules and battery management systems and Exide
Industries will leverage its extensive sales network and brand. As a result of
this unique combination, the JV is ideally positioned to be a leading provider
of storage solutions for electric vehicles and energy storage applications in
India and will also contribute to developing solutions to increase the amount of
renewable energy that is used and reduce India's dependence on fossil fuels.
The JV's production plant will be based in Gujarat. Exide Industries, who are
committed to setting up large-scale manufacturing of lithium-ion batteries, will
be the majority shareholder and Leclanché will be the strategic minority
shareholder of the JV. A module and battery pack assembly line is expected to be
operational by Q2 2019 and a lithium-ion cell production plant is expected to be
in operation by mid 2020. In the intervening period, cells will be sourced from
Leclanché's plant in Willstätt, Germany.
The JV will focus on e-transport, on stationary energy storage systems and
speciality storage markets. In e-transport, the target segment is fleet vehicles
including e-buses, e-wheelers and e-rickshaws.
Gautam Chatterjee, CEO of Exide Industries, said:"Leclanché SA is the perfect
partner for us in India. The Company brings superior technology, modules and
battery management systems, as well as immediate access to engineering resources
to build market-ready products.
This ideally compliments our leading position in the lead acid storage battery
market in India and will allow us to take the lead in the lithium-ion battery
industry, which is expected to grow significantly in the next few years.
Efforts to develop alternate state-of-the-art technologies such as lithium-ion
batteries and energy storage solutions are an important step in tackling the
environmental challenges."
Anil Srivastava, CEO of Leclanché, said:"It is a huge honour that Leclanché has
been chosen by Exide Industries, India's largest battery manufacturer, to
partner with them in their quest to help India achieve its zero emissions goals
and reduce the country's dependence on fossil fuel.
Exide's selection of Leclanché as its partner of choice is a testament to
Leclanché's deep knowhow and IP and a significant endorsement of our
world-leading cell and energy storage technologies, which are the product of our
strong heritage and a decade of investment in lithium-ion R&D and production.
In a region that is expected to be one of the world's largest and fastest
growing markets for electric vehicles, the JV shall provide Leclanché with
giga-scale procurement volumes, which will help reduce costs, and increase
recurring annuity revenues, generating recurring stable revenue growth for the
Company.
This is an important milestone in our stated growth strategy and further
evidence that the opportunity for Leclanché is now. We very much look forward to
working with Exide Industries in delivering the best that Leclanché has to
offer: superior cell technologies, IP and knowhow that combines high quality
German engineering and Swiss precision with deep experience in the design and
implementation of battery storage solutions."
* * * *
Notes to Editors
Background on the Indian EV market
(Source: "The case for electric mobility in India" TFE Consulting)
- India is the fifth largest car market in the world with the potential to
become one of the top three in the near future.
- Size of the market: 400 million customers in need of mobility solutions by the
year 2030.
- Today, only 4 per cent of Indians have access to private motor vehicles
compared to 80 per cent in the US.
- By the year 2030, an estimated 600 million vehicles will be on Indian roads -
three times the current number.
- An estimated 40% of cars sold in India could be electric in 2030.
- Electric mobility is part of radical new mobility solutions to help reduce the
current severe traffic congestions and record breaking pollution levels in major
cities including New Delhi and Mumbai.
About Exide Industries
Exide Industries Ltd is India's largest manufacturer of lead acid storage
batteries and power storage solutions provider. Its current market
capitalisation is close to Rs 215 billion (USD 3.2 billion)
With seven international standard factories spread across the nation for
producing batteries, the company offers one of the widest ranges of batteries
for every conceivable application in automotive as well as industrial segments.
To complete the entire value chain, the company has two captive lead smelting
units and two UPS manufacturing facilities. Exide also has manufacturing
facilities in Sri Lanka and does business globally through its subsidiaries and
international affiliates.
Exide's products are sold globally, particularly in developed markets like
Australia, Japan and Western Europe, under its own brand names.
Exide's strong brand pull, established in India for about a hundred years, is
supplemented by its nationwide dealer network and a very strong R&D center. With
the help of its collaborators - Shin Kobe and Furukawa of Japan, East Penn of
the US and Moura of Brazil - Exide has consistently remained at the cutting edge
of international battery technology and introduced various pioneering products
and power storage solutions in the Indian and global markets.
Exide's vast product range, that includes everything in lead acid from the
smallest UPS batteries to the giant submarine batteries, find applications in
automotive, two-wheelers, inverters, UPS, power, telecom, fork-lift trucks and
railways, among others. Exide is also present in the non-conventional energy
business where it designs and integrates solar and wind power solutions for use
in remote areas of the country.
Exide's customer list includes some of the top most international names in
industries as diverse as automotive, earth moving equipment, telecom, material
handling and UPS manufacturers.
With an annual total income of Rs 92 billion ($ 1.35 billion) in FY 2017-18, the
company is the largest among the branded lead acid storage battery businesses in
India. The company has been consistently profitable and paying dividend every
single year since its inception.
Bombay Stock Exchange (BSE): stock code 500086
National Stock Exchange (NSE): ticker symbol EXIDEIND
Calcutta Stock Exchange (CSE): stock code 15060 & 10015060
About Leclanché
Headquartered in Switzerland, Leclanché SA is a leading provider of high quality
energy storage solutions designed to accelerate our progress towards a clean
energy future.
Leclanché's history and heritage is rooted in over 100 years of battery and
energy storage innovation and the Company is a trusted provider of energy
storage solutions globally. This coupled with the Company's culture of German
engineering and Swiss precision and quality, continues to make Leclanché the
partner of choice for both disruptors, established companies and governments who
are pioneering positive changes in how energy is produced, distributed and
consumed around the world.
The energy transition is being driven primarily by changes in the management of
our electricity networks and the electrification of transport, and these two end
markets form the backbone of our strategy and business model. Leclanché is at
the heart of the convergence of the electrification of transport and the changes
in the distribution network. Leclanché is the only listed pure play energy
storage company in the world, organised along three business units: stationary
storage solutions, etransport solutions and specialty batteries systems.
Leclanché is listed on the Swiss Stock Exchange (SIX: LECN).
SIX Swiss Exchange: ticker symbol LECN | ISIN CH 011 030 311 9
Disclaimer
This press release contains certain forward-looking statements relating to
Leclanché's business, which can be identified by terminology such as
"strategic", "proposes", "to introduce", "will", "planned", "expected",
"commitment", "expects", "set", "preparing", "plans", "estimates", "aims",
"would", "potential", "awaiting", "estimated", "proposal", or similar
expressions, or by expressed or implied discussions regarding the ramp up of
Leclanché's production capacity, potential applications for existing products,
or regarding potential future revenues from any such products, or potential
future sales or earnings of Leclanché or any of its business units.
You should not place undue reliance on these statements. Such forward-looking
statements reflect the current views of Leclanché regarding future events, and
involve known and unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any future results, performance
or achievements expressed or implied by such statements. There can be no
guarantee that Leclanché's products will achieve any particular revenue levels.
Nor can there be any guarantee that Leclanché, or any of the business units,
will achieve any particular financial results.
* * * * *
Media contact for Exide Industries
Sudipto Roy
T: +91 (0)9831 166 651
E-mail:SudiptoR@exide.co.in
Media contacts for Leclanché
Europe/Global:
Desirée Maghoo
T: +44 (0)7775 522 740
E-mail:dmaghoo@questorconsulting.com
Laure Lagrange
T:+44 (0)7768 698 731
E-mail:llagrange@questorconsulting.com
Switzerland:
Thierry Meyer
T: +41 (0)79 785 35 81
E-mail:tme@dynamicsgroup.ch
Thomas Balmer
T: +41 (0) 79 703 87 28
E-mail:tba@dynamicsgroup.ch
US and Canada:
Rick Anderson
T: +1 (718) 986-1596
Henry Feintuch
T: +1 (212) 808-4901
E-mail:leclanche@feintuchpr.com
Investor Contacts
Anil Srivastava / Hubert Angleys
T: +41 (0) 24 424 65 00
E-Mail:invest.leclanche@leclanche.com
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End of ad hoc announcement------------------------------------------------------
Language: English
Company: Leclanché SA
Av. des Sports 42
1400 Yverdon-les-Bains
Switzerland
Phone: +41 (24) 424 65-00
Fax: +41 (24) 424 65-20
E-mail:investors@leclanche.com
Internet: www.leclanche.com
ISIN: CH0110303119, CH0016271550
Valor: A1CUUB, 812950
Listed: SIX Swiss Exchange
End of Announcement EQS Group News Service
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699503 27-Jun-2018 CET/CEST